U.Today – Veteran trader Peter Brandt recently posed a key question that could shape Bitcoin’s next move. In a tweet, Brandt hinted at a potential shakeout in the market, implying that a final “rejection,” or extended period of sideways trading, could occur before a major rally.
“The big question in my opinion is whether Bitcoin will get another dump (or a longer congestive chop) before the pump. Remember, markets generally don’t fall until the retailers are worn out,” Brandt wrote.
A seasoned trader’s use of the term “congestive cut” could refer to a phase of range-bound trading where prices oscillate within a narrow range, frustrating both bulls and bears.
Will Bitcoin experience another “dump” or extended consolidation before the next big pump? According to Brandt, the answer lies in the behavior of retailers.
According to Brandt, markets do not “sour” until retail participants lose patience. In the coming days, eyes will be on the next bitcoin trends as well as the behavior of retailers. If the answer to Brandt’s question is yes, it could mean that Bitcoin’s next significant rally could be just around the corner – but only after a little more struggle.
Bitcoin price action
Crypto markets fell sharply last week; Bitcoin fell from nearly $102,735 on Tuesday to $91,187 at one point on Thursday. Major altcoins suffered even bigger declines on a percentage basis.
BTC bounced back to highs of $95,862 on Friday, which is close to the current consolidation. At the time of writing, BTC is up 0.26% in the previous 24 hours, reaching $94,639. As of Saturday, the price of BTC was moving in a narrow range from $93,670 to $94,983.
While Bitcoin price expectations remain, Bitcoin analyst Willy Woo has warned crypto market participants to be cautious in the coming months, with further gains expected in the near future.
“For the first time in this cycle, risk is at a premium, and there’s a ton of profit-taking in coins being sold and a lot of profit-taking to come before we properly reset,” Woo wrote in a recent X post, noting that although Bitcoin sentiment seems ” uber bullish,” market participants should opt for a “more cautious approach” in the coming months.
